Canadian Industry In Court Over Pricing

The Pharmaceutical Manufacturers Association of Canada and seven of its member companies filed suit in the Supreme Court of British Columbia last month to stop the implementation of reference-based pricing in the province.

The petition says the province's Minister of Health, Paul Ramsey, exceeded his statutory authority when he implemented reference-based prices for H2 antagonist products used to treat ulcers, nitrates for angina and non-steroidal anti-inflammatory drugs for treatment of arthritis. The PMAC says his decision is inconsistent with existing provincial and federal legislation, including the BC Medicare protection Act, the Medical Practitioners Act and the federal Food and Drug Act; the latter gives power only to the Health Protection Branch in matters of drug approval, safety and efficacy, it notes.

The suit says Mr Ramsey's decision was unreasonable, uncertain and based on inappropriate considerations. By not consulting properly with affected parties, he disregarded the principles of procedural fairness, it claims, nor did he take account of all relevant scientific evidence about significant differences between drugs in a given therapeutic category. The system "sacrifices" optimal patient care for the cheapest care unless the patient is willing and able to pay for the optimal therapy, which will lead to two-tier medicine based on ability to pay, says the PMAC.